Treasurer Mike Baird today said NSW will pay a carbon tax bill of nearly $1 billion this year, which is driving higher electricity prices for households and businesses across the state.

NSW Treasury analysis for this financial year shows the bulk of these carbon tax costs leave NSW electricity customers including businesses and households facing an estimated $580 million bill through increased electricity prices.

NSW’s electricity generation assets also face a $355 million bill for stranded carbon costs. The cost to the State Budget of these as well as higher power charges is expected to be $237 million.

“It was clear from the start that NSW would bear the brunt of Federal Labor’s carbon tax, and today we can confirm that in the first year alone, NSW will be hit with a bill worth nearly $1 billion as a direct result of this disastrous tax,” said Mr Baird.

“The Gillard Government has refused to offer the NSW Government appropriate compensation to offset this tax and this is already having a significant impact on the State’s electricity assets and our state’s budget bottom line. However, it is the people of NSW who are suffering the most from these costs due to higher power prices across the state.”

“Federal Labor can try to deny it all they like, but the fact is the carbon tax is already having a very real impact on NSW at a time when we can least afford it. This is money that could be spent on additional front line jobs or one of the many road, school and hospital projects across the State.”

“The NSW Auditor General has already confirmed a $1.3 billion write-off to the value of our generator assets as a result of this tax.”

“The estimated annual hit of $46 million to our schools and hospitals demonstrates the impact that the carbon tax is having on essential services that people rely on each day.”

“It makes no sense that the Commonwealth is compensating Victoria’s privately owned generators for the impact of the carbon tax to the tune of $2 billion, while NSW’s state owned electricity generators get nothing.”

“It’s time for Canberra to come clean and explain why it has refused to offer appropriate compensation to NSW for this massive loss caused by its devastating carbon tax,” Mr Baird said.